GBPUSD Elliot Waves Analysis For 24 March 2016

24 March 2016, GBP/USD

Wave Analysis:

GBPUSD is currently trading with a bearish bias. During the previous intraday, pound traded perfectly short as previous forecasted and ended up rebounding from the zone 1.4079-1.4059. In the meantime, we sit on the sidelines and wait for a clear break below 1.4059 for us to continue short with our target at 1.385. A clear rebound from this zone will mean looking for long positions with our target at 1.4270. This pair should be traded alongside EUR/USD. These pairs have a strong positive correlation of up to +0.89 and will thus likely move in a similar direction during this intraday. Only buy or sell Pound if the other positive correlated pair is giving the same signal.

Trade Recommendations:

Conservative traders should wait for a clear breakout below 1.4059 to go short with their target at 1.385. A clear rebound from the zone 1.4079-1.4059 would mean looking for long positions with our ultimate target 1.4270. If the price rebounds from this zone, then its wise to wait for a break above 1.4176 to confirm the anticipated upward rally.